What is a bank reference? Banking reference
BANK REFERENCE Information (mentions) about the bank in which the company has an account, transferred to another company as information for researching its creditworthiness. Before opening accounts, banks usually investigate the nature of the business, capabilities and finances. responsibility of their clients, and by maintaining constant contacts, they can express their opinions to others regarding the state of affairs of their clients. Such mutual exchange of information on a loan between banks is not a function that can be taken lightly, since it is not only about providing meaningful information on the loan, but also in liability for possible erroneous information. Every bank credit analyst should be familiar with Robert Morris Associates' Code of Ethics for loan inquiries, which was first adopted in 1916 and has been revised several times since.
View value Reference Banking in other dictionaries
Reference- references, w. (French rеfеrence). Recommendation, review of someone or something. (official, special). I am attaching references to my application. Provide references from previous places of work. || Reference........
Ushakov's Explanatory Dictionary
Reference- -And; and. [lat. referre - report]
1. Characteristics, feedback about the business qualities and financial capabilities of a person or enterprise, given by another person or enterprise.
2.........
Kuznetsov's Explanatory Dictionary
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07.02.2019
Bank reference - the concept is often found in a negative connotation, since at the legislative level, the reference is not registered in any way, and therefore has no legal force. In order to avoid falling into the hands of scammers, it is worth giving a precise definition of “bank reference” and understanding what it actually means and what it is used for. Bank reference or bank reference, from an economic point of view, means a recommendation. The concept of reference is often used to replace the phrase “ providing advice on a specific economic structure». Often occurs between two parties who trust each other. One company may recommend a bank or employee to another, thereby confirming the positive characteristics through their own example of interaction. When the adjective “banking” is present, it would be more logical to note that one legal entity recommends another as a positive payer who is ready to pay obligations on time. Simply put, this is a kind of letter that is of a recommendation nature. If we consider from the point of view of the law a “banking reference”, that is, a letter of recommendation, it has no legal force at all. This also cannot be called a confirmation letter, in fact it is simple fiction. There is also a completely reasonable explanation why one bank does not have the right to recommend a solvent client to another; the answer can be found in Article 26 “On Banks and Banking Activities”. This section details that the institution does not have the right to transmit client data and use information about it for your own purposes. The presence of an employee’s signature and seal indicates his incompetence and violations, which should be the reason for his dismissal. Moreover, a “bank reference” may lead to the initiation of a criminal case. However, entrepreneurs dreaming of expansion, which requires funds, have a desire to take on additional credit obligations. In order to receive a large sum you need to earn the bank’s trust by indicating that the debt will be paid on time. Obtaining a certificate is quite confusing, since on the one hand, a “bank reference” can be obtained in the form of a certificate of payment of all obligations, but on the other hand, if an employee signs, he is automatically dismissed. Apply for Anyone can apply for a “bank reference”. Just go to the website of the servicing bank and fill out the form. However, in this case it will be necessary to agree with the processing of personal data; if there is no trust in the system, it is better to contact the institution directly. The request will be in the form of a “business letter”, which contains the following data: It is worth noting that the letter is in a request format. Therefore, all movements and correspondence will be recorded in the official register. It is important to maintain a sense of tact, literacy and etiquette; in the future, this will help reduce the wait time for a completed extract. Although the bank may provide such data, they will not carry a compelling argument. Since no sane institution would want to take on the “reference”, that is, the guarantee that the client will continue to pay regularly. After all, by issuing such a document, the bank assumes all risks and obligations in case of non-payment. Even if the bank agrees to provide a certificate of absence of debts, it will not be a guarantor of solvency; any bank can reject such an argument when deciding to enter into an agreement. When a company or production enters the market, there is a need to declare itself a large system, since in the future it is planned to carry out collections, move funds across accounts, etc. It is beneficial for an entrepreneur to cooperate with large credit institutions, as they can provide a large amount for development. It is worth noting that not a single real employee of the banking system will risk his own freedom for the sake of a false “bank reference”.Features of banking reference
Bank reference at the client's request
Fraud and bank reference
If a banking organization requires its provision, then our sample letter of recommendation to the bank from a counterparty will be useful. A form is also attached. This form is not the only correct one, but it reflects all the necessary points.
FILES
Recently, banks began to turn to legal entities with a request to provide a letter of recommendation from one of their counterparties. Bankers can be understood, because clients often use the loans provided, purchase leasing services for large objects, etc. A letter of recommendation in these cases minimizes the risk of forming a bad debt obligation.
As for the legal justification of such a procedure, it is provided for in Bank of Russia Directives No. 3179-U dated January 21, 2014.
Thus, a banking organization has the right to request letters of recommendation from counterparties in any volume.
Who to choose as a counterparty
In order to provide what the bank wants, it is not necessary to conduct a survey among all counterparties with whom the organization has ever dealt. You can select several, guided by the following principles:
- The recommending counterparty is serviced by the same bank to which the application is submitted (and which sent the request for a letter of recommendation). This way, bank employees have the opportunity to verify the recommender’s responsible attitude in financial matters and monitor the movement of his funds under their jurisdiction.
- The recommender has worked extensively and for a long time with the organization. There are no problems, delays, litigation or other “adventures” with him. Still, the timing of cooperation plays a big role in proving a responsible approach to business.
- The counterparty is known, is in good standing with banks, and has no problems concluding transactions. In principle, any large organization that has established a good reputation will do.
If there are no counterparties with such characteristics, then you will have to choose from what is available.
It is worth noting that if there is insufficient support from counterparties or if there is no response to a request for a letter of recommendation from a counterparty, the bank has the right to refuse service to its client and suspend ongoing operations. So you need to be responsible when requesting any documentation.
Components of a document
The letter of recommendation is drawn up in free form. When writing it, you should be guided by the general rules established for business correspondence. At the top, the details of the counterparty are written down (it is best to fill it out on a specialized form of this organization), as well as the date. Without indicating the latter, the bank may not accept the document, since it needs fresh letters of recommendation (this is implied during the request, although it may not be indicated in its text itself).
The main thing that interests employees of a banking organization is how much they should trust a particular current or potential client. So it is advisable to address the following points in the recommendation:
- Details and names of both organizations.
- Are the companies counterparties to each other?
- An agreement concluded between organizations. Its number and date of signing are indicated.
- How long have the companies been cooperating?
- Were there any irresponsible steps or complaints on the part of the recommended person (since this is a letter of recommendation, it is assumed by default that there were none).
- Whether the counterparty fulfilled its debt obligations, if such arose between the counterparties.
The paper ends with the signature of the head of the recommending counterparty and the date. If possible, a “live” seal is placed. This touch adds weight to the recommendation. Although since 2014, attitudes towards the press have changed significantly.
Possible errors during compilation
When an organization collects the requested package of recommendations, there is no need to collect signatures from different counterparties, using the same text with identical and vague wording such as “long-term cooperation.”
For example, the different number of contracts concluded with the counterparty and the different duration of cooperation should be indicated. It would be useful to indicate additional points characterizing the interacting parties as responsible business partners fulfilling their obligations.
New organizations
If a company's business reputation is at the stage of formation, it makes no sense to request letters of recommendation from a counterparty to the bank. This point must be clarified immediately when business correspondence occurs with a bank employee. But even in a situation where provision is impossible, it is worth answering the request correctly, using specific wording.
Perhaps the bank will be satisfied with the reputation of an individual - the head of the applying organization. It is worth discussing these points, trying to come to a constructive solution that satisfies both parties.
Perhaps, when an individual entrepreneur or legal entity begins to emerge, it makes sense to contact smaller banking organizations that do not request letters of recommendation.
Applications
Copies of the agreements specified in the letter may be attached as the basis for assurances. The larger the amounts and the longer the relationship, the better. You should also not hide anything from bank employees. Perhaps a change in wording will suffice.
For example, if there were some minor complaints during the interaction between counterparties, then it is worth writing in the letter that no major complaints were identified under any of the contracts. On the one hand, this is a positive characteristic, on the other hand, the fact of minor complaints is not hidden.
In general, a sample letter of recommendation to a bank from a counterparty, attached at the top of the text, is the best option. It can be edited to suit a specific situation and the nature of interaction between counterparties. All the main points will be properly described.
A selection of the most important documents upon request Bank reference(regulatory legal acts, forms, articles, expert consultations and much more).
Articles, comments, answers to questions: Bank reference
100% of customers and buyers of goods and services need access to non-financial information (confirmation of personnel qualifications, personal data, references, etc.) when checking counterparties. When assessing a borrower, 88% of bank questionnaires contain a requirement to disclose non-financial information about the current activities of the enterprise. In 40% of cases, regulatory authorities request this type of information. Consequently, despite the fact that many companies prepare non-financial reporting, users are interested in the actual primary data on the basis of which it is formed.
Open the document in your ConsultantPlus system:
So, first the buyer must send the seller an LOI (Letter of Intent) or ICPO (Irrevocable Corporate Purchase Order) along with a BCL (Bank Comfort Letter) or Bank Reference. .
Regulatory acts: Bank reference
Thus, the Applicant’s application did not contain the documents provided for in subparagraph “e” of paragraph 3.3.1.1, subparagraph “d” of paragraph 3.3.8.2.3 of the Procurement Documentation, namely, the application did not include an estimate, as well as a reference from the authorized bank. Moreover, the Applicant’s application contained false information regarding the passport details of the founder of MA LLC.
Decision of the Moscow OFAS Russia dated June 25, 2018 in case No. 1-00-1153/77-18
Circumstances: A complaint was received about the unlawful rejection of the applicant’s application due to non-compliance with the requirements of the competition documentation.
Decision: Recognize the complaint as unfounded; remove restrictions on procurement placement. In accordance with paragraph 2.3.2.2. Documentation The participant must submit documents confirming the financial stability of the Competition Participant (for legal entities, individual entrepreneurs), including a reference from an authorized bank, issued no earlier than 1 (one) year before the deadline for accepting applications.
Instructions for generating and sending salary slips via
on-line service PRIVAT 24 (Internet Client-Bank)
On-line service allows you to:
1. Enter the statement manually -for this you need to know your personnel number
employee and the amount that he needs to credit to the card
2. Import the statement file in *xls or *dbf format.
A mandatory requirement is that the files must comply with a certain structure.
3. Monitor the stages of statement processing in the Bank.
4. Print the statement with a note from the Bank about its processing.
Preparing statements manually
(mainly used for preparing small statements)
Step 1. Select a salary project
You need to go to the Privat24 menu " Cards – Salary - Create a statement»
and select an available salary project:
Step 2. Add the payment reference to the statement
Payment reference is the payment number to the bank's transit account (2924*05*******), which is used for subsequent crediting of funds to cards. The account number must be indicated in the contract.
To add a payment to the statement you must:
Check the box " Add»
Click the “Search” button.
From the displayed list of payments you need to select the desired amount and press the button
« Create».
Attention!!!Payments are searched for a periodLast 3 calendar days . If the payment was made earlier, you need to contact the department servicing the salary project with a request to update the payment reference.
In cases where at the time of generating the statement, the payment has not yet been made (has not been updated), it can be added to the statement later:
At the stage of adding employees to the list
At any convenient time, through the menu " Statement journal»
To create a statement without a payment reference – uncheck the box « Add" and press " Create»:
If the payment reference is known, indicate it in the field " Payment reference», check the box « Add" and click the " Create»
Step 3. Filling out the form NEW
After pressing the button Create» an empty statement is generated, which is assigned a unique identification number (to view all created statements, go to the “Statement Log” menu).
Adding employees to the payroll is carried out through:
Search by personnel number / card number
Using the button " A list of employees» NEW
First way.
Adding employees by personnel number / card number
Fill in the employee's personnel number or card number and click " Search».
Fill in the field "Sum" card replenishment, edit the field " if necessaryPurpose of payment " and press " Add»:
As a result, the card will be added and saved in the statement:
To add the next employee to the list, repeat the search and addition procedure. If you add an employee by mistake, you can remove him by clicking on the " Delete»
Second way.
Adding employees via the “List of Employees” button
When you click it, a list of all employees of the salary project who have open salary cards in this project will be provided.
We select employees. Fill in the field "Sum" replenish the card, if necessary, edit the field "Purpose of payment »
If everything is specified correctly, the card will automatically be added and saved to the payroll.
If the field is filled in incorrectly " Sum» the program will warn you with a sign
Step 4. Checking the statement for errors
After adding all the necessary employees to the list, we send the list for verification.
Based on the results of the check, two situations are possible:
The statement has been verified and is awaiting approval.
The statement has been checked with errors and is awaiting correction.
There are two types of errors:
The amount on the statement is greater than the payment amount
The statement contains cards for which enrollment is not possible
To eliminate these errors, you need to edit the statement:
Delete entries with erroneous amounts and/or time sheets;
Add entries with correct amounts and/or time sheets
After correcting errors, the statement must be sent for verification again.
Step 5. Statement approval
After the statement is checked without errors, the “check” button changes to “approve”:
Important!After approval, the statement is not available for editing; it can either be sent to
bank or delete.
After successful approval, the following message is displayed:
and the menu for signing statements opens. From the list of unsigned statements, select
the one you need and put an electronic digital signature (EDS) on it:
After applying an electronic digital signature to the statement:
it becomes available for sending to the bank for crediting:
Important! All approved/signed statements are stored in the statement log. Search
carried out using the “Status - approved” filter.
Generating a statement using the file import function
Step 1. Preparing the statement file
The service allows you to import statement files in *xls or *dbf format, which correspond
following structure:
* Requirements for the structure of files in *dbf format
A statement file template (in *xls or *dbf format) can be obtained from the bank branch servicing the salary project - contact the manager.
Step 2. Load the list file import menu
Importing the statement is available both in the main menu:
and in the list creation menu:
When you call the import menu, the JAVA application is activated:
Step 3. Select the list file to import
In the “File” menu, select the file format to import, and also indicate the location of the file:
After selecting the file, you will be asked to enter the Privat24 username and password, you need
enter this data and click the button " OK»:
Users who are additionally verified using a one-time password will have
request to select a mobile phone number and enter the received password.
If the entered login and password are correct and the file does not contain errors, the import process will begin
entries from the file to the statement:
After complete downloading of information from the file, a message about the quantity will be displayed
imported records and total statement amount:
Step 4. Preparing the statement for sending for enrollment
To send the imported statement to the bank for crediting, you need to go to the statement journal:
display created statements:
and select the last one created from the list (click on the statement ID):
Further operations with the statement are the same as withmanually creating a statement :
Add a payment reference to the statement and check (Step – 4)
Approve, sign and send the statement to the bank for crediting to the cards (Step – 5)
Tracking the stages of statement processing in the Bank
To check the status of the statement sent for enrollment, go to the journal
and download the sent statements for the required period:
The current status of the statement will be reflected:
Sent statements can acquire the following statuses:
Processed – funds sent to cards
On enrollment (processing) - the statement is awaiting distribution to cards in accordance with the regulations:
Printing a statement with a note from the Bank about its processing.
To print the processed statement, click onStatement ID:
In the statement that opens, select " Seal»: